- Bitcoin jumped over 4% to trade near $71,500 after U.S. President Donald Trump reached a two-week ceasefire agreement with Iran.
- The deal includes a complete reopening of the Strait of Hormuz, easing global supply chain and energy concerns that had weighed on risk assets.
- Crypto-linked stocks, including MicroStrategy (MSTR) and Coinbase (COIN), saw significant pre-market gains as market sentiment shifted back to a “risk-on” footing.
Cryptocurrency markets and global equities rallied sharply on Wednesday morning following a late-night announcement from U.S. President Donald Trump regarding a two-week ceasefire in the conflict with Iran. The de-escalation, brokered with mediation from Pakistan, has injected a wave of liquidity and optimism into risk assets that had been battered by weeks of geopolitical tension.
As of 7 a.m. EST, Bitcoin (BTC) rose 4.6% to trade at approximately $71,500, having reached a session high of $72,750 shortly after the news broke. Ethereum (ETH), the second-largest cryptocurrency by market cap, outperformed the leader with a 7% jump to $2,240. The relief rally comes as a reprieve for traders who witnessed nearly $600 million in liquidations during the volatility preceding the truce.
The geopolitical breakthrough centers on Iran’s agreement to provide “complete, immediate, and safe opening” of the Strait of Hormuz. In exchange, the U.S. has committed to suspending its bombing campaign for 14 days while negotiations proceed in Islamabad. President Trump described the 10-point peace proposal from Tehran as a “workable basis on which to negotiate,” suggesting that most contentious issues between the two nations are nearing resolution.
The “peace train” momentum extended into the equity markets. Dow Jones futures surged by over 1,200 points, while crypto-correlated stocks showed strong upward movement. MicroStrategy (MSTR) and Galaxy Digital (GLXY) advanced more than 6% in early trading, while Coinbase (COIN) and Circle (CRCL) also posted gains of 5% or more.
While the ceasefire has sparked a significant short squeeze and a shift in sentiment, some analysts remain cautious. “This will be a two-way ceasefire!” Trump stated in a social media post, noting that the two-week window allows for the finalization and activation of a long-term agreement. However, the exclusion of Lebanon from the current deal and continued regional skirmishes suggest that the market’s volatility may not be entirely extinguished.
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